Buying the right stock is very important, he says, adding that one should buy for long term, say 20-25 years. That said, it does not mean that a particular stock will not perform in the short to medium term, he added. If we look at the longer-term performances, few quality stocks which stand out very clearly include names consumer-centric ones. Raamdeo is of the view that consumer names have done pretty well in the past. He says this could be because they gave a duopol .. Most of the consumer names have great return on equity, lot of entry barrier and lot of brand ownership; but are these stocks expensive? Raamdeo sees value in top blue-chip stocks which are trading at lower valuations. If investors buy something at 25-30 PE, 35 PE on a 10-year horizon, maybe your returns will get depressed by 2-3 per cent, but if an investor wants to get 25-30 per cent return, clearly you have to buy either emerging blue-chips or you have to buy the old blue- .. Read more
Posted on: Mon, 03 Feb 2014 08:29:46 +0000
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